<p class="rtejustify">The revival of Jet Airways is now possible only under Insolvency and Bankruptcy Code (IBC), the Centre on Thursday said in the first official confirmation that hopes of recovery of India's once second largest airliner have all but ended.</p>.<p class="rtejustify">This is the first case of bankruptcy in the aviation sector.</p>.<p class="rtejustify">The grounded airline came to the brink of closure as the lender's consortium led by State Bank of India refused to infuse the committed interim fund of Rs 750 crore, as promoters, who were supposed to bring the rest of Rs 1,500 crore, could not bring in full amount of their share, Minister of State for Civil Aviation Hardeep Singh Puri informed the Lok Sabha.</p>.<p class="rtejustify">“To mitigate the immediate operational crisis faced by the company, interim funding of Rs 1,500 crores was proposed. Out of this, promoters were expected to bring in Rs 750 crore and the lenders would provide the remaining amount. However, the promoters did not bring in the full amount of their share. Therefore, the lender's consortium led by SBI could not infuse the committed interim fund,” he said in a written reply.</p>.<p class="rtejustify">Puri said that no “unconditional and proper” bids were received when bids were called by the lenders for change in ownership/management of the company.</p>.<p class="rtejustify">“It was understood that some of the relaxation/waiver sought are only available under a corporate insolvency resolution process (CIRP) under the Insolvency & Bankruptcy Code, 2016. Hence SBI has filed an application in National Company Law Tribunal (NCLT), Mumbai under the IBC to work out a resolution plan,” he said, adding “revival of the airline is now possible only under IBC”.</p>.<p class="rtejustify">The SBI had referred Jet Airways to NCLT on June 17 after barely one or two bidders evinced interest in the beleaguered airline.</p>.<p class="rtejustify">Jet Airways, which was grounded on April 17, owes over Rs 8,500 crore to a consortium of banks led by SBI. It has also accumulated losses to the tune of Rs 13,000 crore and vendor and salary to staff dues of an equal amount.</p>.<p class="rtejustify">“Mobilizing financial resources and ensuring efficient operations as per the business plan are the responsibility of the airline. Government of India has no role in raising funds for M/s Jet Airways (India) Limited, as it is an internal matter of the airline,” the minister said to a question on whether the government had any proposal to bailout Jet Airways.</p>
<p class="rtejustify">The revival of Jet Airways is now possible only under Insolvency and Bankruptcy Code (IBC), the Centre on Thursday said in the first official confirmation that hopes of recovery of India's once second largest airliner have all but ended.</p>.<p class="rtejustify">This is the first case of bankruptcy in the aviation sector.</p>.<p class="rtejustify">The grounded airline came to the brink of closure as the lender's consortium led by State Bank of India refused to infuse the committed interim fund of Rs 750 crore, as promoters, who were supposed to bring the rest of Rs 1,500 crore, could not bring in full amount of their share, Minister of State for Civil Aviation Hardeep Singh Puri informed the Lok Sabha.</p>.<p class="rtejustify">“To mitigate the immediate operational crisis faced by the company, interim funding of Rs 1,500 crores was proposed. Out of this, promoters were expected to bring in Rs 750 crore and the lenders would provide the remaining amount. However, the promoters did not bring in the full amount of their share. Therefore, the lender's consortium led by SBI could not infuse the committed interim fund,” he said in a written reply.</p>.<p class="rtejustify">Puri said that no “unconditional and proper” bids were received when bids were called by the lenders for change in ownership/management of the company.</p>.<p class="rtejustify">“It was understood that some of the relaxation/waiver sought are only available under a corporate insolvency resolution process (CIRP) under the Insolvency & Bankruptcy Code, 2016. Hence SBI has filed an application in National Company Law Tribunal (NCLT), Mumbai under the IBC to work out a resolution plan,” he said, adding “revival of the airline is now possible only under IBC”.</p>.<p class="rtejustify">The SBI had referred Jet Airways to NCLT on June 17 after barely one or two bidders evinced interest in the beleaguered airline.</p>.<p class="rtejustify">Jet Airways, which was grounded on April 17, owes over Rs 8,500 crore to a consortium of banks led by SBI. It has also accumulated losses to the tune of Rs 13,000 crore and vendor and salary to staff dues of an equal amount.</p>.<p class="rtejustify">“Mobilizing financial resources and ensuring efficient operations as per the business plan are the responsibility of the airline. Government of India has no role in raising funds for M/s Jet Airways (India) Limited, as it is an internal matter of the airline,” the minister said to a question on whether the government had any proposal to bailout Jet Airways.</p>
